The CEO of Ripple (XRP) Brad Garlinghouse has once again questioned the usefulness of the JPM Coin. He questions it on the grounds that its use is only reserved for JP Morgan Chase clients.
In the middle of February, JP Morgan Chase announced that it would be working on the JPM Coin, a pseudo-stablecoin design to bring stability to its internal payment network.
JPM Coin Not A Worthy Competition For Ripple?
Shortly after the announcement, some analysts made comments that didn’t go down well with Ripple’s CEO. It was said that the JPM Coin would be the end of Ripple. In response to such claims, Garlinghouse stated that banking coins “still aren’t the answer,” and JPM Coin “misses the point.”
On Mar. 6, at the 4th Annual Washington D.C. Blockchain Summit, Garlinghouse spoke in an interview, where he shared more of his opinion concerning the stablecoin project of JP Morgan. One of the things he talked about was JPM Coin’s lack of interoperability, that is, none of its rival banks like Citigroup or Morgan Stanley would be able to benefit from its internal payment network. Garlinghouse went on to joke that:
“This guy from Morgan Stanley was interviewing me last week, and I asked him, so is Morgan Stanley going to use the JPM Coin? Probably not. Will Citi use it? […] Will PNC? And the answer is no. So we’re going to have all these different coins, and we’re back to where we are: there’s a lack of interoperability.”
JPM Coin Solves No Real World Problem
Taking into consideration the fact that JP Morgan’s stablecoin will have no effect on the bank’s non-clients, Ripple’s CEO questioned the need for the development of the project in the first place. Garlinghouse is of the opinion that the US Dollar would serve the bank’s purpose better as the JPM Coin solves no real-world problem.
“Let’s think about this. [JPM] announced the JPM Coin for institutional customers. If you give them a dollar as deposit, they’ll give you a JPM Coin, that you then can move in the JPM ledger. Wait a minute, just use the dollar! I really don’t understand […] what problem that solves.”
In the previous week, a report argued that JPM Coin would be unable to rival Ripple or XRP, and gave the reason of lack of interoperability between institutions as a major obstacle to the adoption of the coin.
Though Garlinghouse repeated most of what the report said in his comments, the CEO admitted that the popularity of cryptocurrency could be boosted by JPM Coin, adding that JPM Coin signifies a milestone for the crypto industry, ”for the blockchain and crypto industry to have players such as JPM leaning in…That’s the one good thing I’ll say about this.”